Tellurian market commentary for July 8, 2020


Henry Hub
Day change: $0.052, down 2.8% | Settle: $1.824 | August 2020

Waha Basis
Day change: UNCH | Settle: -$0.349 | August 2020
Low point on curve: -$0.768 | October 2021

Day change: $0.079, down 3.9% | Settle: $1.938 | August 2020

Day change: $0.005, down 0.2% | Settle: $2.190 | August 2020

Day change: lower | Settle: -$0.170 | August 2020

• BP, Cheniere, and JERA officials all expressed concern today that a $2 Asian gas price would not be sustainable for the growth of the global gas industry...
• ...JERA's Hitoshi Nishizawa stated that such low prices will make it difficult for the development of new LNG supplies...
• ...others on the Japan LNG & Gas Virtual Summit panel stated that LNG prices will need to stay within a band that allows both buyers and seller to be happy
• As if there wasn't already enough reasons for European coal-to-gas switching, carbon prices are surging in the EU, providing gas with a stronger edge for power...
• pointed out by Bloomberg analysts, coal-power margins (dark spreads) have plummeted to the lowest levels in the last decade
• SK E&S is considering a minority stake in ENN's Zhoushan LNG terminal, located in China's eastern Zhejiang province, per an SK spokesperson...
• ...the equity stake is reportedly a part of a broader SK strategy to secure a market outlet in China for its LNG supply
• Elba Island LNG continues to slowly inch towards full operation as Kinder Morgan received FERC approval to introduce mixed refrigerant into unit 9 at the Elba facility
• COVID-19 has truly made a dent on Japan's LNG demand according to one JERA executive officer who participated in today's Japan LNG & Gas Virtual Summit...
• ...Japanese buyers have been deferring shipments while lowering volumes from suppliers and cancelling U.S. cargoes and diverting others into the spot market...
• ...Bloomberg goes on to report that the JERA officer stated he didn't have a "good view" on Japanese LNG demand for the remainder of 2020 given the uncertainty

*The Cryo-spread is calculated by subtracting the NYMEX Henry Hub price from the premium LNG netback to the U.S. Gulf Coast.



Leave a reply

dmg events Global Energy Portfolio

dmg events is an international exhibition and conference organiser, publisher and information provider to the Energy, Construction, Plastics, Coatings, Manufacturing, Transport, Design and Hospitality industries.


Please complete the form below and we will get back to you.


Log in with your credentials


Forgot your details?

Create Account